SOURCE: Omega Navigation

November 12, 2007 18:19 ET

Financials: Omega Navigation Enterprises, Inc. Reports Third Quarter 2007 Results

PIRAEUS, GREECE--(Marketwire - November 12, 2007) - Omega Navigation Enterprises, Inc. (NASDAQ: ONAV) (SGX: ONAV50), a provider of global marine transportation services focusing on product tankers, announced today its financial and operational results for the third quarter ended September 30, 2007.

The Company had previously announced the declaration of its quarterly cash dividend with respect to the third quarter of 2007 of $0.50 per share payable on November 30, 2007 to stockholders of record on November 15, 2007.

Omega Navigation Enterprises, Inc. was incorporated in the Marshall Islands in February 2005. On April 7, 2006, the Company successfully completed its Initial Public Offering of 12,000,000 Class A Common Shares at $17 per share raising a total of $204 million in gross proceeds. Omega Navigation's Class A Common Shares commenced trading on the NASDAQ National Market on April 7, 2006 and on the Singapore Exchange Securities Trading Limited on April 10, 2006.

Third Quarter 2007 Results

For the quarter ended September 30, 2007, Omega Navigation reported total revenues from continuing and discontinued operations of $19.2 million and Net Income of $4.5 million, or $0.30 per share, excluding a non-cash book gain on a revaluation of warrants issued as a partial payment for two newbuilding vessels which were delivered earlier this year and a non-cash book loss on its interest rate collar. Including these non-cash items Net Income was $4.3 million, or $0.28 per share. The calculations of the above basic earnings per share treat all outstanding shares as if they were a single class. EBITDA for the third quarter of 2007 was $14.9 million. Please see below for a reconciliation of EBITDA to Cash from Operating Activities.

Net Income included $1.3 million of revenues related to profit sharing on charters of the vessels Omega Lady Sarah, Omega Lady Miriam and Omega Theodore.

Discontinued operations refer to the operation of the two dry bulk carriers that the Company agreed to sell in September 2006 and delivered on schedule to their new owners in January 2007.

The Company owned and operated an average of 8 vessels during the third quarter of 2007 versus an average of 7.6 vessels during the third quarter of 2006. Excluding profit sharing, the Panamax product carriers earned an average time-charter equivalent rate of $25,047 per day per vessel during the third quarter of 2007, versus $25,110 during the third quarter of 2006. The Handymax product tankers earned an average time charter equivalent (excluding profit sharing) of $20,777 per vessel per day during the third quarter of 2007, versus an average time charter equivalent of $20,673 per day during the third quarter of 2006.

Since the inception of the charters of the product tankers through the third quarter of 2007 the Company has received $3.9 million of cash generated from profit sharing agreements. To date, the Company has recorded income of $3.4 million (including $1.1 million booked in the first quarter of 2007, $1.0 million in the second quarter of 2007 and $1.3, million in the third quarter of 2007). The Company expects to receive approximately an additional $1.3 million in cash related to the profit sharing agreements and book to income approximately an additional $1.8 million in subsequent quarters, for voyages performed to date.

Operating expenses for the Handymax product tankers averaged $5,074 per day per vessel in the third quarter of 2007 versus $3,545 per day per vessel in the third quarter of 2006. The higher expense level in 2007 related to the timing of some purchases as well as repairs and purchases related to the supply of bunkers which included some additives which created minor damage. Panamax product tankers averaged operating expenses of $4,380 per day per vessel in the third quarter of 2007 versus $4,197 per day per vessel in the third quarter of 2006. The Panamax product tankers operated for only 336 days and the Handymax vessels operated for 181 days in the third quarter of 2006, versus 552 and 184 days, respectively, in the third quarter of 2007.

Nine Months ended September 30, 2007 Results

For the nine months ended September 30, 2007, the Company recorded Net Income from continuing and discontinued operations of $10.8 million, or $0.71 per share, on total revenues, including continuing and discontinued operations of $51.5 million.

The Company owned and operated an average of 7.3 vessels in the first nine months of 2007 versus an average of 4.1 vessels in the first nine months of 2006.

The Panamax product carriers in the Company's fleet earned an average time charter equivalent of $25,004 per vessel per day in the first nine months of 2007 versus $25,263 per vessel per day in the first nine months of 2006 (excluding any earnings from profit share agreements). Handymax product tankers in the Company's fleet earned an average of $20,798 per day per vessel in the first nine months of 2007 versus $20,596 per day per vessel in the first nine months of 2006.

Operating expenses for the Company's Panamax product tankers averaged $4,566 per day per vessel, excluding any initial outfitting and pre-delivery expenses, in the first nine months of 2007 versus $4,399 per day per vessel in the first nine months of 2006. Operating expenses for the Company's Handymax product carriers were $4,603 per day per vessel in the first nine months of 2007 versus $3,620 per day per vessel in the first nine months of 2006.

The Panamax product carriers in the Company's fleet only operated for 385 days in the first nine months of 2006 and the Handymax product carriers for only 185 days in the first nine months of 2006, versus 1,437 and 546 days, respectively, in the first nine months of 2007.

Fleet Developments

Current Fleet

Omega Navigation's current fleet includes eight double hull product tankers with an aggregate carrying capacity of 512,358 dwt. All of the Company's product tankers are employed under time charters having a minimum term of three years from their respective delivery dates and are chartered to established charterers including Norden, Glencore and Torm. Six of the eight product tankers have profit sharing arrangements which enable the Company to share in the charter market's upside potential.

Newbuilding Contracts

On June 19, 2007, the Company announced that it had signed shipbuilding contracts with Hyundai Mipo Dockyard, to construct and acquire five newbuilding double hull Handymax product tankers each with a capacity of 37,000 dwt. Four of these vessels are scheduled for delivery in 2010 with the fifth scheduled for delivery in early 2011. The agreed purchase price is $44.2 million per vessel and the Company has received, less up front payment terms, than the Company believes to be industry standard. The Company intends to fund the periodic progress payments with internally generated cash flow and debt. With the addition of these five vessels Omega's fleet will consist of 13 product carriers with a total deadweight capacity of 697,358 tons.

On March 27, 2007 and April 26, 2007, Omega Navigation took delivery from STX Shipbuilding Co., South Korea, of the Omega Emmanuel and the Omega Theodore, respectively, the two newbuilding Ice Class 1A Panamax double hull product tankers with a capacity of 73,000 dwt each, which the Company had previously agreed to acquire.

During January 2007, Omega Navigation delivered its two dry bulk carriers to their new owners. With this delivery and the above mentioned acquisition of the two Panamax Ice Class 1A product carriers, Omega Navigation has fulfilled its strategic vision of becoming a pure product tanker company.

Management Commentary:

George Kassiotis, President and Chief Executive Officer of Omega Navigation, commented: "We are pleased to have concluded our sixth consecutive profitable quarter since our IPO in April 2006. We attribute our strong operational and financial results to our strategy of seeking predictable and stable cash flows through the long term employment of our vessels which continues to provide us downside protection in the freight rate environment. In addition, the fact that six of our eight product tankers have profit sharing which enable us to share into the upside potential of the charter market and thereby help to maximize the return for our shareholders.

All of our vessels are under three year time charters with established charterers pursuant to which we have secured 100% of our operating days for 2007 and 2008 and 63% in 2009. The charters on the vessels delivered to us in March and April of this year extend to 2010.

We would like to reiterate that we are pursuing a strategy of prudent growth, expanding our revenue and profit generation capabilities and in this context, as we have already announced, we have contracted for five newbuilding product carriers from a very reputable shipyard in South Korea, to be delivered starting in the first quarter 2010 with the fifth scheduled for delivery for February 2011. We expect to take delivery of these vessels at a time when newbuilding berths for product tankers around the world are becoming increasingly hard to find. In addition, the asset values for these vessels have already appreciated since we contracted them.

We remain optimistic about the long term fundamentals of the product tanker market, the area of our strategic focus. We believe that we enjoy strong competitive advantages in this market with our focused business strategy, our fleet of young high quality vessels, long term employment with established charterers, a solid but flexible capital structure and a strong management team, enabling us to continue delivering strong, stable and predictable results for our shareholders."

Finally, we continued with our stable dividend policy, declaring our sixth consecutive quarterly dividend of $0.50 per common share.

Quarterly Dividend

On November 1, 2007, the Board of Directors of the Company approved the Company's sixth consecutive quarterly dividend since it went public of $0.50 per common share, payable on November 30, 2007 to shareholders of record as of November 15, 2007.

Omega Navigation intends to declare and pay quarterly dividends to shareholders in amounts that are substantially equal to the available cash from operations during the previous quarter after cash expenses, debt amortization and discretionary reserves.

Gregory McGrath, Chief Financial Officer of Omega Navigation, commented, "We have now paid or declared on schedule six consecutive quarterly dividends since going public in the amount of $0.50 per common share, aggregating $3.00 per common share, and our next quarterly dividend declaration is anticipated for February 2008. Our overall objective is to pursue a strategy of disciplined growth, while at the same time implementing a stable, dividend payout. We believe this strategy will maximize shareholder value over the long term. Our dividend policy enhances our Company's ability to pay dividends to the public shareholders and is structured to enable all shareholders to share equally in our Company's profitability and growth. The Class B shares held by the initial shareholder, which were approximately 20.6% of the total outstanding shares, are subordinated in respect of paying dividends to the public shareholders."

As of September 30, 2007, the Company had a debt to book capitalization ratio of 62%. This level of leverage has allowed the Company to drawdown its revolving credit facility to partially finance the acquisition of its eighth product tanker, the newbuilding vessel Omega Theodore, which was delivered to the Company on April 26, 2007.

Fleet Data

                          Panamax Tankers            Handymax Tankers
                    --------------------------  --------------------------
                        Three months ended          Three months ended
                    --------------------------  --------------------------
                    September 30, September 30, September 30, September 30,
                         2007          2006          2007          2006
                    ------------  ------------  ------------  ------------

Number of vessels
 at end of period              6             4             2             2
Average age of
 fleet (in years)              2             2             1             0
Ownership days (1)           552           336           184           181
Available days (2)           552           336           184           181
Operating days  (3)          552           336           184           181
Fleet Utilization (4)        100%          100%          100%          100%
Voyage revenues (net
 of voyage
 expenses) (7)      $ 13,826,103  $  8,436,866  $  3,822,940  $  3,741,910
Time charter
 equivalent (TCE)
 rate $/day (5)(7)        25,047        25,110        20,777        20,673
Vessel operating
 expenses (net of
 predelivery
 expenses)          $  2,418,015  $  1,410,522  $    933,632  $    641,601
Daily vessel
 operating expenses
 $/day(6)                  4,380         4,197         5,074         3,545
                    ------------  ------------  ------------  ------------

                         Nine months ended           Nine months ended
                    --------------------------  --------------------------
                    September 30, September 30, September 30, September 30,
                         2007          2006          2007          2006
                    ------------  ------------  ------------  ------------

Number of vessels
 at end of period              6             4             2             2
Average age of
 fleet (in years)              2             2             1             0
Ownership days (1)      1,436.76           385           546           185
Available days (2)      1,436.76           385           546           185
Operating days  (3)     1,436.76           385           546           185
Fleet Utilization (4)        100%          100%          100%          100%
Voyage revenues
 (net of voyage
 expenses) (7)      $ 35,925,253  $  9,726,223  $ 11,355,851  $  3,810,335
Time charter
 equivalent (TCE)
 rate $/day (5)(7)        25,004        25,263        20,798        20,596
Vessel operating
 expenses (net of
 predelivery
 expenses)          $  6,560,027  $  1,693,461  $  2,513,188  $    669,733
Daily vessel
 operating expenses
 $/day (6)                 4,566         4,399         4,603         3,620
                    ------------  ------------  ------------  ------------

(1) Ownership days are the aggregate number of days in a period during
    which each vessel in our fleet has been owned by us. Ownership days are
    an indicator of the size of our fleet over a period and affect both the
    amount of revenues and the amount of expenses that we record during a
    period.

(2) Available days are the number of our ownership days less the aggregate
    number of days that our vessels are off-hire due to scheduled repairs
    or repairs under guarantee, vessel upgrades or special surveys. The
    shipping industry uses available days to measure the number of days
    in a period during which vessels should be capable of generating
    revenues.

(3) Operating days are the number of available days in a period less the
    aggregate number of days that our vessels are off-hire due to
    unforeseen circumstances. The shipping industry uses operating days to
    measure the aggregate number of days in a period during which vessels
    actually generate revenues.

(4) We calculate fleet utilization by dividing the number of our operating
    days during a period by the number of our available days during the
    period. The shipping industry uses fleet utilization to measure a
    company's efficiency in finding suitable employment for its vessels
    and minimizing the number of days that its vessels are off-hire for
    reasons other than scheduled repairs or repairs under guarantee,
    vessel upgrades, special surveys or vessel positioning.

(5) Time charter equivalent, or TCE, is a measure of the average daily
    revenue performance of a vessel on a per voyage basis. Our method of
    calculating TCE is consistent with industry standards and is
    determined by dividing voyage revenues (net of voyage expenses) by
    available days for the relevant time period. Voyage expenses primarily
    consist of port, canal and fuel costs that are unique to a particular
    voyage, which would otherwise be paid by the charterer under a time
    charter contract, as well as commissions. TCE is a standard shipping
    industry performance measure used primarily to compare period-to-period
    changes in a shipping company's performance despite changes in the mix
    of charter types (i.e., spot charters, time charters and bareboat
    charters) under which the vessels may be employed between the periods.

(6) Daily vessel operating expenses, which include crew wages and related
    costs, the cost of insurance, expenses relating to repairs and
    maintenance (excluding drydocking), the costs of spares and consumable
    stores, tonnage taxes and other miscellaneous expenses, but excludes
    any predelivery expenses incurred at or prior to the delivery of the
    product tankers, are calculated by dividing vessel operating expenses
    by ownership days for the relevant period. For the three months ended
    September 30, 2007, pre-delivery expenses amounted to $0 million for
    Panamax product tankers and $0 for Handymax product tankers. For the
    nine months ended September 30, 2007, pre-delivery expenses amounted
    to $0.8 million for Panamax product tankers and $0 for Handymax
    product tankers. For the three months ended September 30, 2006,
    pre-delivery expenses amounted to $0.2 million for Panamax product
    tankers and $0.2 for Handymax product tankers. For the nine months
    ended September 30, 2006, pre-delivery expenses amounted to $0.3
    million for Panamax product tankers and $0.3 for Handymax product
    tankers.

(7) For the three months ended September 30, 2007 excludes $1.3 million
    of profit sharing revenue booked in the third quarter of 2007 on the
    "Omega Lady Sarah," the "Omega Lady Miriam" and the "Omega Theodore."
    For the nine months ended September 30, 2007 excludes $3.4 million
    of profit sharing revenue booked in the first, second and third
    quarter of 2007 on the "Omega Lady Sarah," "Omega Lady Miriam" and
    "Omega Theodore."

Fleet Profile and Employment:

The table below describes the profile and employment of the Company's fleet as of today:



                                                       Daily
           Sister   Year  Deadweight          Delivery Hire        Re-
Vessel     Ship (1) Built   (dwt)      Type     Date   Rate(2)     delivery
           -------- ----- ---------- -------- -------- ------- --  --------
CURRENT FLEET
Panamax Product
 Tankers
Omega Queen       A  2004     74,999      LR1   May-06 $26,500 (3)   May-09
           -------- ----- ---------- -------- -------- ------- --  --------
Omega King        A  2004     74,999      LR1   Jun-06 $26,500 (3)   Jun-09
           -------- ----- ---------- -------- -------- ------- --  --------
Omega Lady                           LR1 -Ice
 Sarah            C  2004     71,500 Class 1C   Jun-06 $24,000 (4)   Jun-09
           -------- ----- ---------- -------- -------- ------- --  --------
Omega Lady                           LR1 -Ice
 Miriam           C  2003     71,500 Class 1C   Aug-06 $24,000 (4)   Jul-09
           -------- ----- ---------- -------- -------- ------- --  --------
Omega                                LR1 -Ice
 Emmanuel         D  2007     73,000 Class 1A   Mar-07 $25,500 (6)   Apr-10
           -------- ----- ---------- -------- -------- ------- --  --------
Omega                                LR1 -Ice
 Theodore         D  2007     73,000 Class 1A   Apr-07 $25,500 (6)   May-10
           -------- ----- ---------- -------- -------- ------- --  --------
Handymax Product Tankers
           -------- ----- ---------- -------- -------- ------- --  --------
Omega                                    Ice
 Prince           B  2006     36,680 Class 1A   Jun-06 $21,000 (5)   Jun-09
           -------- ----- ---------- -------- -------- ------- --  --------
Omega                                    Ice
 Princess         B  2006     36,680 Class 1A   Jul-06 $21,000 (5)   Jun-09
           -------- ----- ---------- -------- -------- ------- --  --------
TOTAL (DWT):                 512,358
           -------------- ---------- --------------------------------------
Additional Handymax Vessels
TBN1              E  2010     37,000            Mar-10
           -------- ----- ---------- -------- -------- ------- --  --------
TBN2              E  2010     37,000           July-10
           -------- ----- ---------- -------- -------- ------- --  --------
TBN3              E  2010     37,000           Sept-10
           -------- ----- ---------- -------- -------- ------- --  --------
TBN4              E  2010     37,000            Dec-10
           -------- ----- ---------- -------- -------- ------- --  --------
TBN5              E  2011     37,000            Feb-11
           -------- ----- ---------- -------- -------- ------- --  --------
Total (DWT):                 185,000
           -------------- ---------- --------------------------------------


(1) Each vessel is a sister ship of each other vessel that has the same
    letter.

(2) This table shows gross charter rates and does not include brokers'
    commissions, which are 1.25% of the daily time charter rate.

(3) The Company has granted Torm the option to extend the charter for 24
    months at a minimum daily time charter hire rate of $28,500.

(4) Plus any additional income under profit sharing provisions of the
    Company's charter agreement.

(5) Plus any additional income under profit sharing provisions of the
    charter agreements with D/S Norden A/S. The Company has granted the
    charterers the option to extend the charter for 12 months at a minimum
    daily time charter hire rate of $24,000.

(6) Plus any additional income under profit sharing arrangements, according
    to which charter earnings in excess of $ 25,500 per day will be divided
    equally between Omega Navigation and ST Shipping. When the vessels
    trade in ice conditions, the profit sharing between Omega Navigation
    and ST Shipping is 65/35% respectively.

Conference Call and Webcast:

As previously announced, the Company's management will host a conference call to discuss its third quarter 2007 results on November 13, 2007 at 10:00 A.M. EST.

Conference Call details:

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1-866-819-7111 (US Toll Free Dial In), 0800-953-0329 (UK Toll Free Dial In) or +44 (0)1452-542-301 (Standard International Dial In). Please quote "Omega."

In case of any problem with the above numbers, please dial 1-866-223-0615 (from the US), 0800 694 1503 (from the UK) or + 44 (0) 1452 586 513 (all other callers). Please quote "Omega."

A telephonic replay of the conference call will be available until November 20, 2007 by dialing 1-866-247-4222 (US Toll Free Dial In), 0800-953-1533 (UK Toll Free Dial In) or +44(0)1452-55-00-00 (Standard International Dial In). Access Code: 3663884#.

Slides and audio webcast: There will also be a live, and then archived, webcast of the conference call, through Omega Navigation's website (www.omeganavigation.com). Participants into the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

                     Omega Navigation Enterprises Inc
                     Consolidated Statement of Income
           (All amounts expressed in thousands of U.S. Dollars)

                                 Three months ended     Nine months ended
                                --------------------  --------------------
                                September  September  September  September
                                30, 2007   30, 2006   30, 2007   30, 2006
                                ---------  ---------  ---------  ---------

CONTINUING OPERATIONS
Revenues:
 Voyage revenue                    19,231     12,334     51,367     13,713

Expenses:
 Voyage expenses                      242        155        673        177
 Vessel operating expenses          3,326      2,396      9,847      2,952
 Depreciation and amortization      4,750      3,322     12,809      3,665
 Management fees                      297        285        823        300
 Options' premium                       -          -        200          -
 General and administrative
  expenses                          1,157        841      3,521      1,541
 Foreign currency (gains)/losses       44         (1)        62         13
                                ---------  ---------  ---------  ---------
Operating income                    9,415      5,336     23,432      5,065
                                ---------  ---------  ---------  ---------

Other income (expenses)
 Interest and finance costs        (5,163)    (3,372)   (13,758)    (4,039)
 Interest income                      284        238      1,605      1,692
 Change in fair value of
  warrants settled liability          685          -        233          -
 Loss on derivative instruments      (938)    (1,208)      (572)      (471)
                                ---------  ---------  ---------  ---------
Total other income /(expenses),
 net                               (5,132)    (4,342)   (12,492)    (2,818)
                                ---------  ---------  ---------  ---------

                                ---------  ---------  ---------  ---------
INCOME FROM CONTINUING OPERATIONS   4,283        994     10,940      2,247
                                ---------  ---------  ---------  ---------

DISCONTINUED OPERATIONS
 Income/(Loss) from discontinued
  operations of the bulk carrier
  fleet (including a gain on
  extinguishment of debt of $5
  million in 2006)                      -      1,587       (154)     9,216
 Loss on disposal of dry bulk
  carrier vessels in 2006               -     (1,685)         -     (1,685)
                                ---------  ---------  ---------  ---------
INCOME/(LOSS) FROM DISCONTINUED
 OPERATIONS                             -        (98)      (154)     7,531
                                ---------  ---------  ---------  ---------

                                ---------  ---------  ---------  ---------
Net income                          4,283        896     10,786      9,778
                                =========  =========  =========  =========





                     Omega Navigation Enterprises Inc
                       Consolidated Balance Sheet
          (All amounts expressed in thousands of U.S. Dollars)

                                                September 30,  December 31,
                                                     2007          2006
                                                ------------  -------------
                                                (unaudited)
ASSETS
CURRENT ASSETS:
  Cash and cash equivalents                            9,624          3,862
  Accounts receivable, trade                              21            145
  Inventories                                            552            504
  Prepayments and other                                  547            518
  Restricted cash                                      2,606          2,477
  Vessels held for sale                                    -         81,468
                                                ------------  -------------
Total current assets                                  13,350         88,974
                                                ------------  -------------

FIXED ASSETS:
  Vessels, net                                       465,988        350,288
  Property and equipment, net                            117            143
  Advances for vessels' acquisition and other
   vessel costs                                       22,418            200
                                                ------------  -------------
Total fixed assets                                   488,523        350,631
                                                ------------  -------------

OTHER NON CURRENT ASSETS:
  Deferred charges                                       356            226
  Restricted cash                                      5,000          4,000
                                                ------------  -------------
Total other non current assets                         5,356          4,226
                                                ------------  -------------

Total assets                                         507,229        443,831
                                                ============  =============

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
  Current portion of long term debt                   15,175         49,133
  Accounts payable                                     1,006          1,496
  Accrued and other current liabilities                2,487          1,129
  Deferred revenue                                     1,719          2,719
  Derivatives liability                                  929            313
                                                ------------  -------------
Total current liabilities                             21,316         54,790
                                                ------------  -------------


NON-CURRENT LIABILITIES:
  Long term debt, net of current portion             289,590        188,944
  Warrants settled liability                           7,935              -
                                                ------------  -------------
Total non-current liabilities                        297,525        188,944
                                                ------------  -------------

                                                ------------  -------------
COMMITMENTS AND CONTINGENCIES:                             -              -
                                                ------------  -------------

Stockholders' equity:
  Common stock                                           151            151
  Additional paid-in capital                         196,901        196,590
  Retained earnings/(Accumulated deficit)             (8,664)         3,356
                                                ------------  -------------
Total stockholders' equity                           188,388        200,097
                                                ------------  -------------
Total liabilities and stockholders' equity           507,229        443,831
                                                ============  =============




                 Omega Navigation Enterprises Inc
              Consolidated Statement of Cash Flows
        (All amounts expressed in thousands of U.S. Dollars)


                              Three months ended      Nine months ended
                            ----------------------  ----------------------
                            September   September   September   September
                             30, 2007    30, 2006    30, 2007    30, 2006
                            ----------  ----------  ----------  ----------

Cash flows from operating
 activities
Income from continuing
 operations                      4,283         994      10,940       2,247

Net cash from continuing
 operating activities            9,579       7,182      25,359       9,310
Net cash from discontinued
 operating activities                -       2,217        (692)      5,975
                            ----------  ----------  ----------  ----------
Net cash from continuing
 and discontinued operating
 activities                      9,579       9,399      24,667      15,285
                            ----------  ----------  ----------  ----------

Cash flows from investing
 activities
Net cash used in investing
 activities-continuing
 operations                    (22,400)   (103,598)   (142,734)   (358,052)
Net cash provided by
 investing
 activities-discontinued
 operations                          -           -      81,468           -
                            ----------  ----------  ----------  ----------
Net cash used in investing
 activities- continuing and
 discontinued operations       (22,400)   (103,598)    (61,266)   (358,052)
                            ----------  ----------  ----------  ----------

Cash flows from financing
 activities
Net cash provided by
 financing
 activities-continuing
 operations                      3,757      35,625      79,755     350,432
Net cash used in financing
 activities-discontinued
 operations                          -           -     (37,394)     (3,680)
                            ----------  ----------  ----------  ----------
Net cash provided by
 financing
 activities-continuing and
 discontinued operations         3,757      35,625      42,361     346,752
                            ----------  ----------  ----------  ----------

Net increase/(decrease) in
 cash and cash equivalents      (9,064)    (58,574)      5,762       3,985
Cash and cash equivalents
 at the beginning of the
 period                         18,688      67,617       3,862       5,058
                            ----------  ----------  ----------  ----------
Cash and cash equivalents
 at end of period                9,624       9,043       9,624       9,043
                            ==========  ==========  ==========  ==========







                   Omega Navigation Enterprises Inc
               Reconciliation of EBITDA (1) to Cash from
                         Operating Activities
        (All amounts expressed in thousands of U.S. Dollars)

CONTINUING OPERATIONS         Three months ended      Nine months ended
                            ----------------------  ----------------------
                            September   September   September   September
                             30, 2007    30, 2006    30, 2007    30, 2006
                            ----------  ----------  ----------  ----------


Net cash from operating
 activities                     9,579       7,182      25,359       9,310
  Net increase/(decrease) in
  current assets                  (29)        (69)        123       1,030
  Net decrease in current
  liabilities excluding bank
  debt                            (49)     (1,517)       (618)     (3,830)
  Stock based compensation       (136)          -        (311)          -
  Write off of options’
  premium                           -           -        (200)          -
  Change in fair value of
  warrants settled liability      685           -         233           -
  Net interest
  (income)/expense              4,878       3,164      12,108       2,347
  Amortization of financing
   costs                          (78)       (102)       (220)       (127)
EBITDA                         14,850       8,658      36,474       8,730



CONTINUING & DISCONTINUED     Three months ended      Nine months ended
OPERATIONS                 ----------------------  ----------------------
                            September   September   September   September
                             30, 2007    30, 2006    30, 2007    30, 2006
                            ----------  ----------  ----------  ----------


Net cash from operating
 activities                     9,579       9,399      24,667      15,285
  Net increase/(decrease) in
   current assets                 (29)        (61)        (48)        859
  Net decrease in current
   liabilities excluding bank
   debt                           (49)     (1,462)        132      (3,057)
  Gain on extinguishment of
   debt                             -           -           -       5,000
  Loss on sale of vessels           -      (1,685)          -      (1,685)
  Stock based compensation       (136)          -        (311)          -
  Write off of options’
   premium                          -           -        (200)          -
  Change in fair value of
   warrants settled liability     685           -         233           -
  Net interest
   (income)/expense             4,878       3,825      12,237       4,578
  Amortization of financing
   costs                          (78)       (120)       (261)       (151)
EBITDA                          14,850       9,896      36,449      20,829


(1) EBITDA represents net income before interest, taxes, depreciation and
    amortization. EBITDA does not represent and should not be considered
    as an alternative to net income or cash flow from operations, as
    determined by US GAAP and our calculation of EBITDA may not be
    comparable to that reported by other companies. EBITDA is included
    here because it is a basis upon which we assess our liquidity position
    because we believe it presents useful information to investors
    regarding our ability to service and/or incur indebtedness.

About Omega Navigation Enterprises, Inc.

Omega Navigation Enterprises, Inc. is an international provider of global marine transportation services through the ownership and operation of eight double hull product tankers. The current fleet includes eight double hull product tankers with a carrying capacity of 512,358 dwt. These eight product tankers are chartered out under three-year period time charters. Furthermore, the company recently announced the signing of shipbuilding contracts to construct and acquire five newbuilding double hull Handymax product tankers each with a capacity of 37,000 dwt scheduled for delivery between March 2010 and early in 2011. With the addition of these five vessels, the Omega fleet will expand to 13 product tankers with a total deadweight capacity of 697,358 tons.

The Company was incorporated in the Marshall Islands in February 2005. Its principal executive offices are located in Piraeus, Greece and it also maintains an office in the United States.

Omega Navigation's Class A Common Shares are traded on the NASDAQ National Market under the symbol "ONAV" and are also listed on the Singapore Exchange Securities Trading Limited under the symbol "ONAV 50."

Cautionary Statement Regarding Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "anticipate," "intends," "estimate," "forecast," "project," "plan," "potential," "will," "may," "should," "expect" "pending" and similar expressions identify forward-looking statements.

The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, the Company's management's examination of historical operating trends, data contained in the Company's records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the Company's control, the Company cannot assure you that the Company will achieve or accomplish these expectations, beliefs or projections.

In addition to these important factors other important factors that, in the Company's view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for product tanker and dry bulk shipping capacity, changes in the Company's operating expenses, including bunker prices, drydocking and insurance costs, the market for the Company's vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other factors. Please see the Company's filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.

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